I recently completed a financial health check for a medium-sized manufacturing client. This included a review of the business’ compliance with related standards (IFRS for SME’s) and legislation (Companies Act, SARS, CIPC), and a review of the efficiency of the design and implementation of financial processes.
The review took 3 weeks and looked at all major account balances.
The final report gave management an overview of key areas of weakness, both in terms of compliance with standards, and in terms of efficiency of financial processes. And provided recommendations to rectify weaknesses and improve processes.
The review identified a major weakness in an accounting process and provided an immediate resolution of the problem, which helped the client to remove long-standing inaccuracies from their management reporting and to gain a better picture and understanding of their financial position and performance.
The value of the review was realised almost immediately – with the removal of the errors identified and implementation of recommendations, management were able to obtain a clear and accurate view of their financial statements, and had a better understanding of the movements of their key balances, including inventory, revenue, cost of sales and cashflows.
To understand how a financial health check can help your business, contact me for a free proposal.